Bralirwa has on Monday said it is hiking prices for soft drinks brands three days after it announced a drop of 82 percent in its profits to Rwf 929million in first half of 2016 from Rwf 5,167 million in 2015.
The Heineken’s subsidiary and largest brewer in the country that has both soft drinks and beer lines says the move is aimed at covering both the increasing cost of inputs as well as changing business environment.
“Due to increase in price of inputs and the changing business in general, we have decided to increase prices for our soft drinks,” said Jonathan hall, managing Director, Bralirwa on Monday.
According to the statement released by the company, the recommended retail Price for bottled soda of 30 cl stands at Rwf 350 up from Rwf 300, while 50cl for big bottles will cost Rwf 500 the prices for plastic bottles that were recently introduced into the market will cost Rwf 450 for 30 cl effective Monday August 22.
Bralirwa last increased its prices for soft drinks in 2012 where they sighted an increase in transport costs, raw materials prices as well as business costs.
Commenting on the drop in profits, the brewer on Friday said that volatility in the foreign exchange market with the local currency-Rwanda Franc declining against the green back as well as high operating costs.
“The significant decline is attributed mainly to higher interest expenses on loans and losses following revaluation of foreign currency denominated liabilities due to devaluation of the Rwanda franc,” Hall told KT Press.
With sale volumes for soft drinks growing by 6.3 percent in the first half of 2016, the increase in prices according to the company will further help improve its performance outlook in the second half of 2016, although there are worries of cost pressure and constrained consumer spending power.